Silver (XAGUSD) Price Forecast: Bullish Momentum Builds After Weekly Breakout
By Bruce Powers | Updated: July 7, 2025, 20:41 GMT
Silver is showing promising signs of continued strength after breaking above key resistance levels in its recent trading week. The precious metal’s price action indicates that bullish momentum is building, positioning silver for potential gains in the near term.
Breakout Above Key Resistance and Bull Wedge Pattern
Silver recently completed a pullback test at a critical support level marked by a falling trendline, the upper boundary of a classic bull wedge pattern. This bull wedge breakout was initially triggered last Thursday and confirmed by two consecutive daily closes exceeding the trendline and surpassing an interim swing high of $36.84. Adding to the bullish case, last Thursday’s rally also reclaimed the 20-day moving average (MA), a technical indicator that reflects the average closing price over the past 20 trading days. The price held firm above this support on Monday, with the 20-day MA positioned at $36.41—a crucial level that coincided neatly with the wedge’s top boundary. Monday’s price action showed increased volatility, with the daily range encompassing the trading ranges of the prior two sessions. This suggests active buying and heightened market interest in silver.
Signs Point to Continued Uptrend
The pullback seen earlier in the week appears to be a normal retracement within a strengthening bull trend. Should silver decisively break above Monday’s high of $37.23, it would signal further bullish strength and open the door for a test of new trend highs above $37.32. Technical analysts also highlight a potential upside target zone between $38.46 and $38.61. This price corridor aligns with long-term resistance from a rising channel line and the midline of a shorter-term upward channel—critical areas that may influence future price action as silver approaches those levels.
Weekly Chart Bulls in Control
Notably, last week’s closing price was the highest weekly close for silver since September 2011. Monday’s price action triggered a breakout above the previous week’s high of $37.08 on the weekly chart, highlighting sustained strength over a larger time frame.
This breakout also marked a bullish reversal on the weekly chart, with silver closing near the weekly high. Such a pattern is widely regarded as a positive signal that buyers are gaining momentum. The combination of the bull wedge breakout, support tested at the 20-day MA, and the ascending trend channel framework underscores an increasingly bullish environment.
What This Means for Traders and Investors
The current technical setup suggests that silver could continue its upward trajectory, supported by increased buying interest and structural price patterns favoring bulls. Traders looking for confirmation should watch for a rally above Monday’s highs, which would strengthen the case for further gains.
However, as always, prudent risk management and awareness of broader market dynamics are essential. The silver market is influenced by global economic conditions, inflation expectations, and currency fluctuations, all of which can impact direction and volatility.
About the Author:
Bruce Powers is a seasoned financial analyst with over 20 years of experience in the financial markets. He holds an MBA and the Chartered Market Technician (CMT®) designation. Bruce has served as head of trading strategy at hedge funds and corporate advisory firms, providing expert insights on futures and commodity trading to retail investors.
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Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research and consult with a financial advisor before making any investment decisions. Trading commodities involves risk and may not be suitable for all investors.